Arlington’s ‘historically’ low home supply pushes prices higher
It’s a great time to sell homes in the Metroplex. For buyers? Not so much.
Median prices for North Texas homes increased by 6.4% to $291,000 in 2020 despite the public health and economic crises brought on by the pandemic, according to Texas A&M University Real Estate Research Center data.
However, homes were in shorter supply in the region’s largest cities. The supply of homes in Arlington is under a month at the current sales pace. A supply of six and a half months indicates a healthy balance of buyers and sellers, according to the Real Estate Research Center.
“That’s a really historically low monthly inventory,” said Luis Torres, research economist with the Real Estate Research Center. “I don’t think even during the housing boom we saw such a low monthly inventory.”
Arlington’s supply has run low for years, said Dixon Holman, chairman of the Arlington Board of Realtors. He said the uncertainty of the pandemic and economy could contribute to the thinner monthly inventory because people are reluctant to put their houses up for sale.
Real Estate Research Data estimates median home prices in Arlington rose to $242,000, a 6.3% increase from 2019, but still below the median in Fort Worth ($245,000) and Dallas ($339,000).
The median price in Texas rose 7.7% to $259,000, and Real Estate Research Center analyses foresee the market will stabilize but continue to grow. Torres said possible factors contributing to market performance include local and state vaccination rates and the potential next round of federal stimulus.
“I think that’s a major theme for 2021 — a strong housing market — but the major headwind is going to be the lack of supply,” Torres said.
Despite the supply problems, Holman said, Arlington’s market will continue to improve, especially as the economy bounces back from coronavirus.
“If that’s the case, obviously there will be more opportunities for buyers to make more transactions,” he said. “I foresee 2021 continuing to be a strong year for the Arlington area as it applies to housing.”
Both Holman and Taylor Oldroyd, president of the Arlington Board of Realtors, advised prospective home buyers to act fast on sales.
“Much can be said about the disruptive challenges of 2020, but homebuyers fared well and will continue to do so, as investors and buyers take advantage of low rates,” Oldroyd said in a press release.
This story was originally published February 2, 2021 at 5:33 PM.
